Kelly Olsen

North Korea promotes Kim son to general

Appointment of Kim Jong Un suggests he may become his father's successor

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North Korean leader Kim Jong Il promoted Kim Jong Un to the rank of general in the Korean People’s Army, the state news agency reported, the clearest signal yet that the younger Kim is on track to succeed his father in ruling the impoverished country.

Kim Jong Il issued an order handing six people — including son Kim Jong Un — the rank of general, the Korean Central News Agency said in a dispatch published early Tuesday. Also promoted was Kim Kyong Hui, which is the name of Kim Jong Il’s sister. Her name was listed ahead of Kim Jong Un’s in the report.

The report came hours ahead of the start of the country’s biggest political meeting in three decades and amid intense speculation that Kim Jong Il’s youngest son and sister could be given key posts at the gathering.

It marks the first time that Kim Jong Un’s name has appeared in official media.

It is widely believed that the ruling Workers’ Party meeting, which was set to take place later Tuesday, may pave the way for Kim Jong Un to become his father’s successor. Some experts also said that Kim Kyong Hui might also get a prominent party job to oversee a transfer in case the leader dies before the son is ready to take over.

U.S. Assistant Secretary of State Kurt M. Campbell said in a conference call that Washington was “watching developments carefully” and was working to interpret the announcement’s significance.

The question of who will take over from Kim Jong Il, who rules with absolute authority but is believed to suffer from a host of ailments, is important to regional security because of North Korea’s active nuclear and missile programs, and regular threats it makes against rival South Korea.

Many delegates to the party meeting arrived in Pyongyang on Sunday by train and the city was festooned with flags and placards announcing the event, footage shot by video news service APTN showed. “Warm congratulations to the representatives meeting of the Workers’ Party of Korea!” read one poster.

Kim Jong Il took control of North Korea when his father, the North’s founder Kim Il Sung, died of heart failure in 1994. He has reportedly groomed third son Kim Jong Un as his heir to power.

A South Korean newspaper reported Monday that the younger Kim was chosen as a military delegate to the conference. The party central committee then put out internal propaganda proclaiming him to be Kim Jong Il’s sole successor, the Chosun Ilbo newspaper said, citing a source in North Korea that it did not identify.

Still, some experts said Kim’s son may not be ready to officially debut as a successor, which could make the 68-year-old leader promote his sister to a prominent position to help Kim Jong Un eventually run the North.

Kim Kyong Hui, who is married to Russian-educated Jang Song Thaek, vice chairman of the all-powerful National Defense Commission, has emerged as one of Kim’s key aides in recent years, experts said.

Kim Jong Il might designate his 64-year-old sister to serve as a caretaker for the third-generation successor after Kim’s death, former Japanese Defense Minister and national security adviser Yuriko Koike wrote in a syndicated column earlier this month.

Cheong Seong-chang, a senior fellow at the Sejong Institute think tank near Seoul, shared the view.

“There is a possibility that she could play the role of a coordinator to make sure the power succession goes smoothly,” Cheong said.

Koike wrote that Kim Jong Il himself signaled his sister’s authority in the communist country in comments before the ruling party’s Central Committee, saying “Kim Kyong Hui is myself, the words of Kim Kyong Hui are my words, and instructions issued by Kim Kyong Hui are my instructions.”

Koike, now a top official in Japan’s Liberal Democratic Party, did not clarify in her column how she knew of these comments.

Kim Kyong Hui, who heads the North Korean ruling party’s light industry department, is four years younger than her only biological sibling. Biographical information about her is extremely scarce. But a former sushi chef to Kim Jong Il wrote in a 2003 memoir that Kim Kyong Hui is full of charm when it comes to her brother.

“At banquets, she would sit next to Kim Jong Il and kept on saying, “brother, brother!” Kenji Fujimoto said. “She very much took after her brother.”

A small photo in a book published by South Korea’s Unification Ministry shows Kim Kyong Hui with a chubby, bespectacled face and wavy, shoulder-length hair. Footage aired last year by Pyongyang’s state television showed her dressed in a light gray parka similar to her brother’s while she stood side-by-side with him during an inspection trip to a farm.

Koike wrote that Kim Kyong Hui was believed to have a fierce personality, adding that Kim Jong Il is quoted as saying, “When my sister turns violent, no one can stop her. Even I can do nothing.”

Jang Sung-min, a former South Korean lawmaker who was involved in foreign affairs, also said Kim Kyong Hui has a fiery personality, citing an unidentified source in Beijing who he says is privy to North Korea affairs.

“Kim Kyong Hui is the only person in the North who can speak frankly to Kim Jong Il and can even be emotional in front of him,” said Jang, who authored a book on Kim Jong Il.

Her husband, Jang Song Thaek, was demoted in early 2004 in what analysts believed was a warning from Kim Jong Il against gaining too much influence. But he has since made a political comeback in a rehabilitation engineered by his wife, the former lawmaker said.

Jang returned to power in 2006 and headed the ruling party’s department handling administration and capital construction one year later, according to the Unification Ministry.

Both Jang and Kim Kyong Hui have become key officials accompanying Kim Jong Il during field visits to public facilities, which include military units that form the key base of Kim’s support.

There was a big jump in the couple’s appearances in KCNA in recent years.

“Kim Kyong Hui’s frequent appearances in her brother’s field trips showed that she is a key person who can play a role in the power succession,” said Kim Yong-hyun, a North Korea expert at Seoul’s Dongguk University.

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Associated Press writers Peter J. Spielmann in New York and Kwang-tae Kim and Sangwon Yoon in Seoul contributed to this report.

Toyota memo boasts of saving $100M on recall

Internal memo from 2009 comes out ahead of congressional hearings this week

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Claims by Toyota in internal documents that it saved money by obtaining a limited recall from regulators in 2007 create an even bigger challenge for the automaker’s president when he testifies before U.S. lawmakers this week over quality and safety lapses.

Toyota officials said they saved $100 million by successfully negotiating with the U.S. government on a limited recall of floor mats in some Toyota and Lexus vehicles, according to new documents shared with congressional investigators.

Toyota, in an internal presentation in July 2009 at its Washington office, said it saved $100 million or more by negotiating an “equipment recall” of floor mats involving 55,000 Toyota Camry and Lexus ES350 vehicles in September 2007.

The savings are listed under the title, “Wins for Toyota — Safety Group.” The document cites millions of dollars in other savings by delaying safety regulations, avoiding defect investigations and slowing down other industry requirements.

The documents could set off alarms in Congress over whether Toyota put profits ahead of customer safety and pushed regulators to narrow the scope of recalls. Two House committees are holding hearings this week on the Japanese automaker’s recall of 8.5 million vehicles in recent months to deal with safety problems involving gas pedals, floor mats and brakes.

“You can feel that the staff were thinking more about company profits than customers,” Mamoru Kato, an analyst at Tokai-Tokyo Securities, said in an e-mail after viewing the documents. “It’s unfavorable for Toyota ahead of the hearings.”

The world’s largest automaker has been criticized for responding too slowly to complaints of sudden acceleration in its vehicles, threatening to undermine its reputation for quality and safety.

The documents were turned over to the House Oversight and Government Reform Committee — which is scheduled to hold a hearing Tuesday — and obtained by The Associated Press on Sunday. The presentation was first reported by The Detroit News.

Toyota President Akio Toyoda is scheduled to testify at a separate House Energy and Commerce Committee hearing on Wednesday.

“This is any executive’s worst nightmare — a damning document comes out and exposes your company as having basically gone slow and tried to delay addressing significant safety problems with their product,” said Jeff Kingston, director of Asian studies at Temple University Japan.

Toyota said in a statement: “Our first priority is the safety of our customers and to conclude otherwise on the basis of one internal presentation is wrong. Our values have always been to put the customer first and ensure the highest levels of safety and quality.”

Company spokesman Paul Nolasco in Tokyo had no further comment, saying only that the company handed over some documents to the committee.

Transportation Department spokeswoman Olivia Alair called the document “very telling. And that’s why Secretary (Ray) LaHood has been saying we’re going to hold Toyota’s feet to the fire and make sure they do what’s necessary to make their cars safe for the driving public.”

The new documents show the financial benefit of delay. In the presentation, Toyota said a phase-in to new safety regulations for side air bags saved the company $124 million and 50,000 man hours. Delaying a rule for tougher door locks saved $11 million.

On defect regulations, the document boasts that Toyota “avoided investigation” on rusting Tacoma pickup trucks. The National Highway Traffic Safety Administration investigated the case in 2008 but closed it without finding a safety defect. Toyota agreed to buy back certain rusty pickups, inspect other and extend warranties.

The document lists seven “Wins for Toyota & Industry,” including “favorable recall outcomes,” “secured safety rulemaking favorable to Toyota” and “vehicles not in climate legislation.” Another page lists “key safety issues,” including “Sudden acceleration on ES/Camry, Tacoma, LS etc.”

In one passage, the document says Toyota “negotiated ‘equipment’ recall on Camry/ES re SA; saved $100M+, w/ no defect found.”

NHTSA had launched an investigation in March 2007 over allegations that floor mats were interfering with accelerator pedals. Toyota told the government a month later that there was “no possibility of the pedal interference with the all-weather floor mat if it’s placed properly and secured.”

By that August, the government had connected the problem to a dozen deaths and a survey of 600 Lexus owners discovered 10 percent reported sudden or unexpected acceleration. But the recall in September 2007 was limited to 55,000 Camry and ES350 vehicles to replace the floor mats.

The 10-page internal presentation was dated July 6, 2009, less than two months before a high-speed crash near San Diego killed a California highway patrol officer and his family and reignited concerns over sudden acceleration in Toyotas.

In October 2009, Toyota issued its largest-ever U.S. recall, involving about 4 million vehicles, over concerns of pedals getting stuck in floor mats.

The presentation lists Yoshi Inaba, Toyota’s chief executive in North America, on its cover. Inaba is scheduled to testify before the House Energy and Commerce Committee on Wednesday, along with Toyoda and Jim Lentz, president of Toyota Motor Sales USA. The committee is also expected to hear from LaHood, NHTSA Administrator David Strickland and safety advocates.

The Oversight Committee is holding a hearing Tuesday with Lentz, LaHood and Strickland. A Senate committee is planning a March 2 hearing.

Toyoda arrived in the United States on Saturday and appeared to be preparing for the hearing, the Yomiuri newspaper, Japan’s largest, reported Monday. Nolasco, the Toyota spokesman, said the company does not comment on the moves of individual executives, citing security reasons and company policy.

Toyota has said it will create an outside review of company operations, do a better job of responding to customer complaints and improve communication with federal officials.

Toshiro Yoshinaga, an analyst at Aizawa Securities in Tokyo, said that Toyota’s actions as seen in the documents shows the company believed the problems with its vehicles were unlikely to become a major issue and illustrate the company’s weakness in crisis management.

“Toyota’s perception was extremely optimistic,” he said. “It’s sense of crisis has been lacking.”

Yoshinaga also said the documents put the company in a futher bind ahead of Toyoda’s testimony.

“But a pinch can also be a chance,” he said. “If Toyoda can offer a proper explanation then the issue can settle down. If not, then it won’t.”

Temple Universty’s Kingston said Toyoda must make clear that the company has learned a lesson from growing too quickly and losing track of quality control, though even that will be unlikely to stave off harsh criticism from lawmakers.

“He’s going to be taking an awful pummeling, I think,” Kingston said.

—-

Ken Thomas reported from Washington. Associated Press Writer Malcolm Foster in Tokyo contributed to this report.

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Report: Toyota plans to recall 300,000 Priuses

Brake problems in top-selling gas-electric hybrid may lead to worldwide recall

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Toyota plans to recall about 300,000 Prius hybrids worldwide over a brake problem and will notify the U.S. and Japanese governments Tuesday, a news report said.

The recall of the gas-electric Prius will cover cars that went on sale since May last year through January, Kyodo news agency reported late Monday.

Kyodo, which did not identify its sources for the information, said the automaker will notify authorities in Japan and the U.S. of its plan, which will cover more than 270,000 of the hybrids sold in the two countries.

Toyota spokeswoman Ririko Takeuchi said no decision on a Prius recall has been made. Kenji Sugai, an official in Japan’s Transport Ministry section in charge of recalls, said it had not been informed of any such plan by Toyota.

The Kyodo report follows others in Japanese media recently that the world’s largest automaker has decided to announce a recall early this week. The company has only said it will soon announce plans to deal with the braking problem.

At least 100 drivers of Prius cars in the U.S. have complained to the government that their antilock brakes seemed to fail momentarily while driving on bumpy roads. The Japanese government has also received dozens of complaints. Toyota plans to fix a software glitch to correct the problem. The government says the problem is suspected in four crashes that caused two minor injuries.

Toyota says the brakes will work if the driver keeps pushing the pedal.

Toyota has already recalled more than 7 million other cars for repairs in the U.S. and other countries over a sticky accelerator and floor mats that can get caught in the gas pedal.

The Prius is the world’s top-selling gas-electric hybrid and its fuel efficiency has drawn intense interest amid concerns about global warming and dependence on fossil fuels.

Toyota has sold 300,000 of the vehicles in about 60 countries. Kyodo reported recalls in other countries will follow those in Japan and the U.S. The company says it has already fixed vehicles that went on sale since last month.

Though there have been reports that Toyota will recall the cars, the company has an option of a “service campaign,” in which the company would simply notify owners to bring their cars in for repairs.

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